Hopes harnessed to casino sites

New track, VLT parlor proposal must wait on racing license award

While the state Gaming Commission focuses on siting four new upstate casinos, investors who want to bring a new harness track and video lottery terminal parlor to the North Country are waiting. It's a condition that could last for years.

Mark F. Bohn and his partners want to build a track, a video lottery terminal parlor and an off-track betting facility on 660 acres outside the Jefferson County village of Alexandria Bay, though that deal is contingent on winning state licenses. In order to qualify for a VLT license, a bidder must have some sort of racing license as well.

Legislation passed in 1940 initially set the number of harness racing tracks in New York at seven. After World War II, legislators created another license to accommodate the surge of interest in the sport. The eighth harness track license that Bohn is seeking has been up for grabs since 2006, when the Syracuse Mile track stopped running parimutuel races.

Three different bidders tried and failed to win the license in 2011, including one proposal on the same tract of land — roughly 30 minutes from the Canadian border — on which Bohn would like to develop the gaming center along with an outlet mall, 128-room hotel and 500-seat convention center.

The state's harness tracks are preparing for changes to the regional gaming landscape. This fall, the state is expected to award four licenses for upstate full-gaming casinos, a competition that several experienced racino operators — including those behind Saratoga Casino & Raceway and Tioga Downs in the Southern Tier — have jumped into with proposals.

It remains to be seen what effect the new competition will have on racino business once the new gaming halls open.

Even as the national gaming industry worries about flagging revenues, Bohn thinks his project can appeal to the cross-border market; the closest harness racing competitor would be 200 miles south at Vernon Downs.

"The location really is the key to us," said Bohn, a Rochester businessman with roots in the North Country.

Alexandria Bay falls within the St. Regis Mohawks' exclusivity zone around the Akwesasne Mohawk Casino in Hogansburg. That zone was negotiated by the tribe and Cuomo last year in exchange for the renewed flow of revenue payments to the state, which had been suspended during a long-standing dispute.

"The St. Regis Mohawk Tribe would oppose any development that may jeopardize our established gaming operations," said tribal spokeswoman Allyson Doctor. "As for development in Jefferson or St. Lawrence counties, we would of course be concerned with substantiated discussion of development — however, to our knowledge these proposals do not yet have political support."

According to an official at the Gaming Commission, the state's agreement with the Mohawks doesn't prohibit a harness track or VLT facility from operating.

According to Bohn, the proposed project would cost $89 million, create 500 construction jobs and 500 permanent jobs in hospitality, gaming and entertainment once the facility is completed.

Bohn wouldn't name the other members of his development group except to say it includes heavy hitters in the financial, gaming and horse racing industries. An outside consulting firm performed a market study for Bohn and his partners, and that data makes them think there's room for another harness track in New York.

Bohn isn't alone in his desire to tap into the destination-tourism potential of the area: Last week, Gov. Andrew Cuomo said that a lodging and conference facility 30 minutes away from Alexandria Bay would receive $3 million in funding from the Regional Economic Development Council initiative.

He said the proposed track could also attract riders who race in Ontario or Montreal. Still, he didn't necessarily believe that this track's location would keep consumers from crossing the border to the nearby Canadian casinos.

Right now, Bohn can only hope for a swift decision on the four upstate casinos. And even then, it's unclear how quickly the Gaming Commission will begin the procurement process for the eighth license.

"We'll be more than ready for the day when (the Gaming Commission) gets to the Request for Application," he said.